Committee Meeting March 7, 2017 PRESENTED BY Finance and - - PowerPoint PPT Presentation

PRESENTED BY Florida Agricultural and Mechanical University

Board of Trustees Budget, Finance, and Facilities Committee Meeting

March 7, 2017

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Finance and Administration

PRESENTED BY Florida Agricultural and Mechanical University

Item V – Auxiliary Facility Income and Expenditure Statements

• Dr. Wanda Ford, Interim Vice President Finance and Administration/CFO

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Auxiliary Facility Income and Expenditure Statements

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Subject: Approval of University Auxiliary Facilities Operating Budgets with Revenue Bond for Prior Year, Current Year and Projected Year Rationale: Pursuant to Board of Governors Regulation 9.008, the collection of fiscal information related to certain auxiliary facilities with revenue bond covenant language requiring prior year, current year, and projected subsequent year income and expenditure must be adopted by the University Board of Trustees prior to being presented to the Board of Governors for approval. Attached are the income and expenditure statements for Parking Services and Housing Recommendation: It is recommended that the Board of Trustees approves the Income and Expenditure Statement (Operating Budgets) for these Auxiliary Facilities with Outstanding Revenue Bonds.

Auxiliary Facility Income and Expenditure Statements

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INCOME AND EXPENDITURE STATEMENT UNIVERSITY: FLORIDA A&M UNIVERSITY BOND TITLE: STUDENT DORMITORY REVENUE AND REVENUE REFUNDING SERIES 2010 A&B AUXILIARY FACILITY (IES): Housing Operations 2015-16 2016-17 2017-18 Actual Estimated Projected

• 1. REVENUE CARRIED FORWARD
• A. Operating Cash Carried Forward:

Liquid 2,346,713 3,775,456 4,775,759 Investments Sub-Total: 2,346,713 3,775,456 4,775,759

• B. Replacement Reserve Forward:

Bond Covenants (Facilities Maintenance and Equipment) 4,248,851 4,354,782 4,813,955 Other Sub-Total: 4,248,851 4,354,782 4,813,955 TOTAL CARRIED FORWARD (A +B): 6,595,564 8,130,238 9,589,714

• 2. CURRENT YEAR REVENUE:

* Revenue 14,804,844 15,337,089 15,727,969 Interest Income Other Income TOTAL CURRENT YEAR REVENUE: 14,804,844 15,337,089 15,727,969

• 3. SUMMARY OF AVAILABLE REVENUES (1 +2):

21,400,408 23,467,327 25,317,683

• 4. EXPENDITURES

Salaries and Matching 2,417,557 2,591,437 3,622,224 Other Personal Services 858,337 409,935 300,000 Operating Expense 3,667,879 4,919,161 5,556,600 Repairs and Maintenance Debt Service 5,922,080 5,922,080 5,923,786 Repair and Replacement Expense Operating Capital Outlay 66,786 35,000 310,000 Other Expense & Transfers Out TOTAL EXPENDITURES: 12,932,639 13,877,613 15,712,610

• 5. TRANSFERS TO REPLACEMENT RESERVES

Bond Covenants (Facilities Maintenance and Equipment) 443,462 459,173 471,839 Other Sub-Total: 443,462 459,173 471,839

• 6. TRANSFERS FROM REPLACEMENT RESERVES

Bond Covenants (Facilities Maintenance and Equipment) 337,531 Other Sub-Total: 337,531

• 7. ENDING REPLACEMENT RESERVES (1B +5 -6)

Bond Covenants & Other (Facilities Maintenance and Equipment) 4,354,782 4,813,955 5,285,794 Interest Income Earned on Reserve Balance Sub-Total: 4,354,782 4,813,955 5,285,794

• 8. ENDING OPERATING CASH (1A +2 -4 -5)

3,775,456 4,775,759 4,319,279

• 9. SUMMARY OF ENDING REVENUES (7 +8)

8,130,238 9,589,714 9,605,073 Prepared By : Ronica Mathis Telephone : (850) 412-5289 * Revenue as outlined in the Bond Covenants to support the debt servicing of the bonds.

Auxiliary Facility Income and Expenditure Statements

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INCOME AND EXPENDITURE STATEMENT UNIVERSITY: FLORIDA A&M UNIVERSITY BOND TITLE: Parking Facilities Revenue Bond Series 1997 AUXILIARY FACILITY (IES): Parking Operations 2015-16 2016-17 2017-18 Actual Estimated Projected

• 1. REVENUE CARRIED FORWARD
• A. Operating Cash Carried Forward:

Liquid 1,620,767 1,672,676 1,258,999 Investments Sub-Total: 1,620,767 1,672,676 1,258,999

• B. Replacement Reserve Forward:

Bond Covenants (Facilities Maintenance and Equipment) 791,618 854,161 914,381 Other Sub-Total: 791,618 854,161 914,381 TOTAL CARRIED FORWARD (A +B): 2,412,385 2,526,837 2,173,380

• 2. CURRENT YEAR REVENUE:

* Revenue 1,942,280 1,910,327 1,972,077 Interest Income Other Income TOTAL CURRENT YEAR REVENUE: 1,942,280 1,910,327 1,972,077

• 3. SUMMARY OF AVAILABLE REVENUES (1 +2):

4,354,665 4,437,164 4,145,457

• 4. EXPENDITURES

Salaries and Matching 478,715 634,533 778,695 Other Personal Services 32,694 100,000 Operating Expense 954,568 1,166,301 1,135,354 Repairs and Maintenance Debt Service 233,343 233,343 233,290 Repair and Replacement Expense Operating Capital Outlay 63,546 33,000 Other Expense & Transfers Out 97,656 196,913 136,820 TOTAL EXPENDITURES: 1,827,828 2,263,784 2,417,159

• 5. TRANSFERS TO REPLACEMENT RESERVES

Bond Covenants (Facilities Maintenance and Equipment) 62,543 60,220 80,096 Other Sub-Total: 62,543 60,220 80,096

• 6. TRANSFERS FROM REPLACEMENT RESERVES

Bond Covenants (Facilities Maintenance and Equipment) Other Sub-Total:

• 7. ENDING REPLACEMENT RESERVES (1B +5 -6)

Bond Covenants & Other (Facilities Maintenance and Equipment) 854,161 914,381 994,477 Interest Income Earned on Reserve Balance Sub-Total: 854,161 914,381 994,477

• 8. ENDING OPERATING CASH (1A +2 -4 -5)

1,672,676 1,258,999 733,821

• 9. SUMMARY OF ENDING REVENUES (7 +8)

2,526,837 2,173,380 1,728,298 Prepared By : Ronica Mathis Telephone : (850) 412-5289 * Revenue as outlined in the Bond Covenants to support the debt servicing of the bonds.

PRESENTED BY Florida Agricultural and Mechanical University

Item VI – Project Updates

Sameer Kapileshwari P.E., Associate Vice President for Facilities

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Public Private Partnership Project

Background: FAMU is exploring various financing options to address its housing

• challenges. One such option is the Public Private Partnership or P3
• program. We envision a project, including:

– Development of Student Housing along the East Corridor – Development of a Mixed Use-Town Center – Development of an Athletics Complex

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Public Private Partnership Project

Status:

• Selection committee has been formed and is reviewing the proposals submitted in response to

the “Intent to Negotiate” (ITN) for the Public Private Partnership (P3) project

• Owner’s P3 consultant (JLL) has been engaged to utilize their expertise in reviewing the ITN

documents and proposals received

• Presentations were completed by the potential partners on (February 15, 2017)
• Follow-up Questions were submitted to the potential partners with a response due back on

(March 7, 2017) Next Steps:

• Selection committee and P3 consultant will continue to review the proposals (March 2017)
• The committee will seek the Best and Final Offer (BAFO) from the firms (March and April

2017)

• Owner’s P3 consultant (JLL) to incorporate BAFO into comparative matrix (March and April

2017)

• The selection team will review the BAFO and make a recommendation to the senior leadership

team and will seek approval from the Board of Trustees to proceed with developing the final contract (April 2017)

• The recommendation will be submitted to the Board of Trustees for approval (June 2017)
• Submit BAFO to the Board of Governors for approval (September 2017)

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Center for Access and Student Success

Background: The FAMU Center for Access and Student Success (CASS) is designed to be a multipurpose building serving as a one-stop shop for programs like recruitment, admissions, financial aid and enrollment management. This building will also house registrar, scholarship office, counselling services and the Center for Disability Access and Resources.

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Center for Access and Student Success

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Task Timeline Task Owner(s) (**) Architect Contract Board of Trustees (BOT) Approval February 20, 2017 Facilities, Finance, BOT Architect Notice to Proceed February 21, 2017 Facilities Submit Conceptual Schematic Design (CSD) February 22, 2017 Design team FAMU Review February 28, 2017 Facilities Conceptual Schematic Design (CSD) Guaranteed Maximum Price (GMP) Estimate from Construction Management (CM) March 7, 2017 Construction Manager (CM) Submit Advanced Schematic Design (ASD) March 27, 2017 Design team Site Utility Analysis March 31, 2017 Design team FAMU Review April 5, 2017 Facilities Advanced Schematic Design (ASD) Guaranteed Maximum Price (GMP) Estimate from Construction Management (CM) April 13, 2017 Construction Manager (CM) Submit Design Development (DD) May 15, 2017 Design team FAMU Review May 23, 2017 Facilities Design Development (DD) Guaranteed Maximum Price (GMP) Estimate from Construction Management (CM) May 30, 2017 Construction Manager (CM) Submission of Capital Improvement Plan (CIP) to BOG (CIP will be based on CM GMP estimate at Design Development stage) August 1, 2017 Facilities

(*) Total project cost is an estimate and will be continuously refined (with A/E and CM input) as the design progresses (**) Tentative Board approval dates based on the currently published Board meeting calendar

Center for Access and Student Success

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Task Timeline Task Owner(s) Submit 75% Construction Documents (CD) August 22, 2017 Design team FAMU Review August 29, 2017 Facilities 75% Construction Documents Guaranteed Maximum Price (GMP) Estimate from Construction Management (CM) September 15, 2017 Construction Manager (CM) Presentation at the BOG Workshop (CM GMP estimate based on 75% Construction Documents will be used in the presentation) October 3, 2017 Facilities and Finance Submit Final Construction Documents (CD) October 9, 2017 Design team FAMU Review October 16, 2017 Facilities Construction Documents Guaranteed Maximum Price (GMP) from Construction Management (CM) November 16, 2017 Construction Manager (CM) FAMU, A/E, and Construction audit team review of the GMP November 22, 2017 Facilities, design team, construction audit (**) Construction Management (CM) Contract BOT Approval November 29-30, 2017 Facilities, Finance, BOT Construction commences/Ground breaking December 1, 2017 Construction Manager (CM) Substantial Completion April 20, 2019 Facilities, CM, design team Final Completion May 20, 2019 Facilities, CM, design team

(*) Total project cost is an estimate and will be continuously refined (with A/E and CM input) as the design progresses (**) Tentative Board approval dates based on the currently published Board meeting calendar

Site Selection - Center for Access and Student Success (CASS)

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Proposed Site

Site Utilities - Center for Access and Student Success (CASS)

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Front Rendering - Center for Access and Student Success (CASS)

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Rear Rendering - Center for Access and Student Success (CASS)

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Ground Floor Plan - Center for Access and Student Success (CASS)

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Second Floor Plan - Center for Access and Student Success (CASS)

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Third Floor Plan - Center for Access and Student Success (CASS)

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Construction at a Glance

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PROJECT SCOPE STATUS FAMU/FSU College of Engineering Building A and Building B Renovations (included restroom upgrades, ADA, HVAC and building envelope upgrades) Project currently in close out Student Services Expansion Building expansion to provide additional dining, kitchen, and office space Substantial completion scheduled for May 2017 Vet Tech (Quincy) facility Provision of new anatomy labs, surgery prep, and surgery rooms Project will be closed out in June 2017

PRESENTED BY Florida Agricultural and Mechanical University

Item VII – Facilities Priorities

Sameer Kapileshwari P.E., Associate Vice President for Facilities

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Capital Improvement Plan (CIP) 2018- 2023

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Background: Every year all SUS Universities are required to prepare and submit their five year Capital Improvement Plan (CIP) requests. These requests for academic facilities have to be consistent with the findings of the University’s Educational Plant Survey and the Master Plan. Our CIP project requests for the year will be listed in order of our priority. This year the CIP due date to the Board of Governors is August 1, 2017.

Capital Improvement Plan 2018-2023

***This request is made in conjunction with similar requests from Florida State University

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CIP Team Recommended proposed CIP list (working draft): Priority No. PECO-Eligible Project Requests 1. Student Affairs Building/CASS 2. Pharmacy Building Phase II Shell Space Buildout 3. Central Chill Water and Heating Plant Boiler and Chiller Upgrade 4. Army ROTC /Howard Hall Re-Purpose 5. STEM Teaching Lab /Dyson Building Re-Purpose 6. Navy ROTC/Perry-Paige Re-Purpose /Addition 7. Foote-Hilyer ground and 1st Floor Re-Purpose 8. Classroom Technology/ Distance Learning Upgrade 9. Computer Information Systems Building 10. Science Teaching Facility (Stem) 11. Social Sciences Building 12. Engineering Technology Building 13. General Classroom Phase II 14. FAMU/FSU College of Engineering Phase III *** 15. COE Auditorium/Curriculum Laboratory 16. 5 Hole Golf Course 17. Land acquisitions

PRESENTED BY Florida Agricultural and Mechanical University

Item VIII – Space Utilization

Sameer Kapileshwari P.E., Associate Vice President for Facilities

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Educational Plant Survey Summary

* Percentage of = Current inventory and funded projects – Demolition Space needs

Space Category Space Needs by Space Types Satisfactory Space Inventory *Net Space Needs % Instructional Classroom 102,348 115,391 118% Teaching laboratory 127,935 205904 167% Research Laboratory 219,195 36,099 24% Academic Support Study 161,795 115,363 80% Instructional Media 17,058 3,625 30% Auditorium/Exhibition 25,587 12,020 47% Teaching Gymnasium 94,542 931 73% Institutional Support Student Academic Support Office/Computer 312,136 238,943 92% Campus Support Services 51,382 43,577 116%

24 $180 million of deferred maintenance campus-wide based on recent Facilities Condition Audit

PRESENTED BY Florida Agricultural and Mechanical University

Item IX – Financial/Budget Update and Multi-Year Budget Process

• Dr. Wanda Ford, Interim Vice President Finance and Administration/CFO

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Financial/Budget Update and Multi-Year Budget Process

Budget/Financial Update

• BOG allocated budget based on student fees for 12k students

($175m)

• FAMU allocated budget based on student fees for 9k students

($163m)

• Additional budget authority of $12m was unallocated
• Actual enrollment was 9,600 students resulting in a budget surplus

At this time, we do not anticipate any budgetary issues for the E&G Budget at the end of the fiscal year.

Multi-Year Budget Process The approved budgets for FY 17-18 will be used to forecast for the next 3 years.

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Financial/Budget Update and Multi-Year Budget Process

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TOTAL % EXPENDED/ ADMINISTRATION BUDGET ENCUMBRANCES EXPENDITURES COMMITTED COMMITTED PRESIDENT 2,980,362 843,567 1,064,718 1,908,285 64.03% COMMUNICATIONS/EXTERNAL AFF 1,235,669 509,628 551,325 1,060,953 85.86% BROOKSVILLE 507,349 180,595 154,846 335,441 66.12% VP ADMINISTRATION 9,147,420 3,448,644 4,397,940 7,846,584 85.78% VP DEVELOPMENT 1,229,008 570,578 566,989 1,137,567 92.56% VP AUDIT AND COMPLIANCE 732,805 340,063 313,112 653,175 89.13% VP LEGAL AFFAIRS 1,522,214 635,721 687,901 1,323,622 86.95% ITS 9,163,462 3,324,112 4,240,996 7,565,108 82.56% PRESIDENTIAL RESERVE 1,947,120

• 0.00%

CAMPUS SECURITY 2,969,777 1,305,344 1,323,774 2,629,118 88.53% TOTAL ADMINISTRATION 31,435,186 11,158,252 13,301,601 24,459,853 77.81% PLANT OPERATIONS & MAINTENANCE PHYSICAL PLANT 18,265,300 7,659,424 8,274,255 15,933,679 87.23% FACILITIES PLANNING 1,219,340 464,454 425,157 889,611 72.96% ENVIRONMENTAL SAFETY 554,055 240,499 204,813 445,312 80.37% TOTAL PO&M 20,038,695 8,364,377 8,904,225 17,268,602 86.18% LIBRARIES UNIVERSITY LIBRARIES 4,512,267 1,342,222 2,224,824 3,567,046 79.05% STUDENT SERVICES VP STUDENT AFFAIRS 10,253,590 2,799,953 6,627,202 9,427,155 91.94% TUITION Differential NEED BASE 2,100,000 908,144 908,144 43.24% WOMEN ATHLETICS 714,056 241,889 250,286 492,175 68.93% TOTAL STUDENT SERVICES 13,067,646 3,041,842 7,785,632 10,827,474 82.86% TOTAL NON I&R 69,053,794 23,906,693 32,216,282 56,122,975 81.27% INSTRUCTIONS AND RESEARCH VP ACADEMIC AFFAIRS 7,914,250 2,606,059 3,026,471 5,632,530 71.17% ESI 1,731,254 733,465 726,878 1,460,343 84.35% SUSTAINABILITY CENTER 367,591 142,423 162,103 304,526 82.84% ARCHITECTURE 3,634,603 3,634,603 1,665,836 1,604,290 44.14% SOCIAL SCIENCES 13,275,358 6,370,183 5,863,150 12,233,333 92.15% SBI 7,615,952 3,607,787 3,516,972 7,124,759 93.55% CESTA 4,962,346 2,386,905 2,234,251 4,621,156 93.12% JOURNALISM 2,652,008 1,216,029 1,208,506 2,424,535 91.42% EDUCATION 6,086,055 2,383,812 2,664,759 5,048,571 82.95% NURSING 2,203,861 934,692 878,455 1,813,147 82.27% PHARMACY 11,540,014 5,250,279 5,418,154 10,668,433 92.45% ALLIED HEALTH 4,175,912 1,865,252 1,966,803 3,832,055 91.77% SCIENCE AND TECHNOLOGY 8,690,131 3,997,751 3,914,795 7,912,546 91.05% GRADUATE STUDIES 2,828,578 529,380 1,062,253 1,591,633 56.27% LAW SCHOOL 12,348,393 5,679,219 5,725,147 11,404,366 92.36% TUITION DIFFERENTIAL 4,900,000 1,709,129 2,852,168 4,561,297 93.09% TOTAL I&R 94,926,306 43,046,968 42,886,701 82,237,520 86.63% TOTAL ALLOCATED E&G 163,980,100 66,953,661 75,102,983 138,360,495 84.38% TOTAL UNALLOCATED E&G ** 12,000,000 TOTAL E&G 175,980,100 66,953,661 75,102,983 138,360,495 84.38% ** TUITION NOT COLLECTED BECAUSE OF DECREASE IN ENROLLMENT. THIS IS BUDGET AUTHORITY ONLY AND CANNOT BE SPENT IF DOLLARS ARE NOT COLLECTED. 2016-2017 E&G OPERATING BUDGET AS OF DECEMBER 31, 2016 FLORIDA A&M UNIVERSITY

Financial/Budget Update and Multi-Year Budget Process

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FLORIDA A&M UNIVERSITY NON E&G Budget Status As of December 31, 2016

Dept Fund 07/01/2016 Beginning Fund Balance Budgeted Revenue 16-17 Revenue Collected YTD Available Revenue 2016-17 Budget 16-17 Expenditures & Encumbrances as

• f 12/31/16

YTD Fund Balance Notes DRS Fund 118 Various 118 337,520 3,873,055 1,639,486 1,977,006 4,245,751 3,677,642 (1,700,636) A Late Registration (Fund 117) 480910 117 75,282 50,100 50,100 125,382 15,900

• 125,382

Law School Bar Prep Fee 613012 116 6,194

• 6,194

11,623

• 6,194

Law School Library Coin Oper 603412 116 55,833 12,080 4,494 60,327 11,186 1,002 59,325 Journalism Lab Fee 611012 116 3,721 3,500 1,860 5,581 3,710

• 5,581

Graphic Arts Lab Fee 611032 116 (58,521)

• 735

(57,786)

• (57,786)

B Nursing Lab Fees 614012 116 22,203 18,425 5,660 27,863 23,625 11,926 15,937 Nursing ATI Fees 614022 116 4,016 48,500 15,568 19,584 63,000 18,316 1,268 FAMU/Leon Cty Pharmacy 615012 116 476,389 339,500 150,864 627,253 354,718 292,738 334,515 Pharmacy Lab Fees 615022 116 88,171 37,800 14,902 103,073 101,289 13,496 89,577 Allied Health Lab Fees 616012 116 11,136 16,200 2,500 13,636 16,430 2,123 11,513 Music Lab Fees 617032 116 7,131 6,250 5,550 12,681 4,770 3,135 9,546 Biology Material Supplies Fee 617062 116 40,468 30,000 17,070 57,538 92,427 26,816 30,722 Chemistry Lab Fee 617072 116 28,831 25,215 7,575 36,406 28,411 19,137 17,269 CIS Lab Fees 617082 116 (521) 22,500 1,605 1,084 11,034 10,673 (9,589) C Continuing Education 618070 116 (120,681) 351,930 177,082 56,401 168,383 149,349 (92,948) D Center for Ethnic Psychology Researc 618074 116

• 5,500
• 825
• Marching 100 Summer Camp

618075 116 86,793 118,000 22,687 109,480 128,508 130,308 (20,828) E Entomology Field Day 618076 116 51,258 22,000 20,268 71,526 23,386 20,197 51,329 Edmonds Youth theatre 618079 116 17,332 21,250 3,875 21,207 28,946 12,801 8,406 Office of Inst Tech - Support 618510 116 20,916 61,944 55,973 76,889 63,751 42,318 34,571 Distance Learning- SBI 618520 116 174,507 484,704 109,296 283,803 258,526 89,092 194,711 Distance Learning- Nursing 618530 116 42,072 118,584 39,528 81,600 128,834 42,250 39,350 Distance Learning- Public Health 618540 116 49,612 111,150 50,700 100,312 147,855 31,349 68,963 Pharmacy Seminars 618701 116 (78,217) 10,000 1,275 (76,942)

• (76,942)

F

• Univ. Library Copy/Print Services

630010 116 52,145 30,000 13,290 65,435 27,704 23,142 42,293 Transcript Fee 604370 116 98,454 170,000 170,000 268,454 127,881 87,574 180,880 Student Hlth Ctr Pharmacy 604800 116 13,683 231,500 154,489 168,172 177,271 182,231 (14,059) G Revenues

Academic Affairs

Financial/Budget Update and Multi-Year Budget Process

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FLORIDA A&M UNIVERSITY NON E&G Budget Status As of December 31, 2016

Dept Fund 07/01/2016 Beginning Fund Balance Budgeted Revenue 16-17 Revenue Collected YTD Available Revenue 2016-17 Budget 16-17 Expenditures & Encumbrances as

• f 12/31/16

YTD Fund Balance Notes Surplus Property 445300 116 102,926 34,500 25,155 128,081 33,373 17,162 110,919 Auxiliary Overhead 603130 116 2,042,693 1,075,000 258,531 2,301,224 1,473,138 1,079,817 1,221,407 Late Payment Fund 117 480920 117 2,759,784 400,000 400,000 3,159,784 358,056 37,846 3,121,938 Fin Aid Adm Exp Controller Fund 117 481220 117 1,377,132 145,000 145,000 1,522,132 323,208 131,663 1,390,469 Bookstore 603150 116 963,332 505,000 340,556 1,303,888 349,126 247,487 1,056,401 University Commons 603170 116 5,578,499 11,462,640 8,226,453 13,804,952 13,324,450 11,384,573 2,420,379 Bus & Aux. Services 603400 116 169,230 279,000 342,750 511,980 290,013 170,189 341,791 Post Office 603401 116 270,410 321,180 267,172 537,582 409,686 325,356 212,226 Procurement Contracts 603405 116 315,517 185,059 69,747 385,264 167,248 165,948 219,316 Rattler Card 603407 116 285,778 248,073 161,632 447,410 266,236 227,366 220,044 Copy Center 603410 116 137,545 267,197 221,707 359,252 231,363 188,129 171,123 Building Code 603415 116 256,808 25,000 304,802 561,610 216,788 142,932 418,678 Events department 635010 116 258,431 97,425 31,158 289,589 135,993 43,049 246,540 Events department-Ticket Sales 635011 116 11,717 50,000 37,666 49,383 50,000

• 49,383

Technology Fee 482200 117 160,701 1,617,240 1,617,240 1,777,941 1,510,897 1,354,530 423,411 Telecommunications 603406 116 344,481 2,130,330 2,130,330 2,474,811 2,359,314 1,024,332 1,450,479 Revenues

Administrative & Financial Services

Controller's Office Business and Aux Services Construction & Facilities Planning E.I.T

Financial/Budget Update and Multi-Year Budget Process

30

FLORIDA A&M UNIVERSITY NON E&G Budget Status As of December 31, 2016

Dept Fund 07/01/2016 Beginning Fund Balance Budgeted Revenue 16-17 Revenue Collected YTD Available Revenue 2016-17 Budget 16-17 Expenditures & Encumbrances as

• f 12/31/16

YTD Fund Balance Notes Fin Aid Adm Exp Fund 117 481210 117 66,871 250,000 250,000 316,871 303,462 234,168 82,703 Orientation Fee (Fund 117) 482000 117 149,194 271,393 185,956 335,150 266,488 228,727 106,423 Rattler Aquatics 603160 116 13,327 21,200 21,200 34,527 40,218 19,160 15,367 Student Union 604140 116 (47,671) 650,101 459,951 412,280 600,738 346,373 65,907 Student Union Bowling Alley 604141 116 47,940 13,000

• 47,940

23,017 6,702 41,238 Campus Recreation 631100 116 23,687 693,643 682,395 706,082 680,006 562,101 143,981 FAMU DPS Alarm Monitor 604170 116 6,710 19,950

• 6,710

10,600

• 6,710

FAMU Child Care Center 604480 116 98,870 669,872 331,132 430,002 732,550 456,968 (26,966) H Hosp O&M Student Hlth 604790 116 1,346,970 1,800,566 1,211,994 2,558,964 3,037,559 2,363,232 195,732 Counseling Services 604795 116 24,141 433,977 433,977 458,118 458,364 416,966 41,152 LifeScan Finger Printing 603210 116 117,746 55,500 12,923 130,669 60,419 58,568 72,101 University Parking 603200 116 1,554,003 2,007,344 926,520 2,480,523 2,534,470 1,273,784 1,206,739 Housing Fund 110 Various 110 3,390,676 15,337,089 7,363,270 10,753,946 14,962,994 7,237,437 3,516,509 A&S Fees Various 117 291,888 2,401,728 2,401,728 2,693,616 2,892,171 2,092,319 601,297 Athletics Various 115

• 8,937,500

4,086,253 4,086,253 7,577,360 7,385,251 (3,298,998) J Concessions 450100 117 546,219 227,628 203,244 749,463 295,815 94,266 655,197 NOTES: A Collections are received from DOE bi-monthly. These collections are calculated using the FEFP. All salaries have been encumbered for the entire fiscal year. B The item types for this department has been corrected and spending has been restricted until the deficit has been eradicated. C Revenues for this department are collected as students register for classes that are associated with the respective lab fee. D A debt reduction plan is in place in the Continuing Education department, spending is continuously being montitored to adhere to the submitted plan. E Revenues for this department are collected as students register for band camp during the summer. F G Revenues are collected continuosly throughout the fiscal year as students purhase medicine from this Student Pharmacy. H I The university is awaiting a check from the Foundation that will cover the projected negative balance. J Revenues A debt reduction plan has been developed for Pharmacy Seminars, until revenue is collected to cover the accumulated deficit , all spending has been restricted for the FY16-17. A debt reduction plan has been developed to address the deficit in Athletics. The budget and spending is reviewed on a weekly basis.

President Student Affairs

Revenues for FAMU ChildCare are generated continously throughout the fiscal year and will eliminate the projected negative balance

PRESENTED BY Florida Agricultural and Mechanical University

Item X – Cost Savings (Quarterly Update)

• Dr. Wanda Ford, Interim Vice President Finance and Administration/CFO

31

Current Year Cost Savings –Central Strategies

• Status of major areas to realize savings:

– Reduce use of consultants – Procurement from shared SUS contracts – Bulk purchases for IT/equipment – Outsourcing bulk mail, shipping, and printing – Mandatory use of University’s copy center – Recommend hiring freeze for current vacant positions – Voluntary Separation Plan – Implement campus motor pool – Explore debt refinancing options

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GREEN: Currently in process for this year ORANGE: Currently under review RED: Not feasible at this time

PRESENTED BY Florida Agricultural and Mechanical University

Item XI – Succession Planning (structural model)

• Ms. Joyce Ingram, Associate Vice President/Chief Human Resources Officer

33

Succession Planning at FAMU

What it is:

• Process for building a pipeline of talent through deliberate planning and investment in institutional leadership

Benefits: Assures talent bench strength in place to support the University in

• Achieving its mission, vision and strategic imperatives
• Meeting stakeholder expectations associated with:
• Offering Quality Education
• Assuring Access and Student Success
• Operational Effectiveness and Efficiency
• Supporting smooth and effective Leadership Transitions, and
• Enhancing individual and organizational productivity

How: Identification and nurturing of internal talent through

• Assessment of Leadership Competencies
• Training and Career Development
• Diversity and Inclusion Initiative
• Evaluation and Feedback
• Mentoring

Next Steps:

• Development of a comprehensive framework for succession planning for review and approval by University

Leadership by April, 2017

• Ongoing development and implementation of tools, processes and initiatives to support the above
• Pilot Career Development Model and Talent Review Process in HR and other campus units
• Implementation of the University’s campus-wide Diversity and Inclusion Initiative

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PRESENTED BY Florida Agricultural and Mechanical University

Item XII – Food Service Vendor

• Ms. Rebecca Brown, Assistant Vice President Auxiliary Services

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Food Service Vendor

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Background: On October 29, 2013, the Board of Trustees approved an agreement with Metz Culinary Management to provide food services at FAMU. As stated in the agreement, the agreement may be renewed at the President’s discretion for up to one additional five (5) year term, subject to satisfactory performance by the Contractor.” The President is considering the option to renew the agreement for one additional term of five years. The renewal is based on the following:

• 1. The vendor has exceeded performance expectations
• 2. The vendor has demonstrated its ability to transform the dining
• perations in accordance with Business and Auxiliary Services’ Five-

Year Strategic plan

• 3. Overall, the dining program has experienced growth in spite of

declining enrollment numbers

• 4. Customer satisfaction has consistently improved
• 5. The vendor has proposed a substantial increased investment amount

than originally offered

Food Service Vendor Metz Financial Contribution Update

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FLORIDA A&M UNIVERSITY METZ CONTRACT VALUE ORIGINAL CONTRACTED TERMS FROM METZ Description Stub Year Actuals Year 1 Actuals Year 2 Actuals Year 3 Actuals/Projecte d Year 4 Projected Year 5 Projection SUB TOTAL YEARS 1 - 5 Year 6 Projected Year 7 Projected Year 8 Projected Year 9 Projected Year 10 Projected SUB Total YEARS 6-10 Grand Total

• 1. Total Commissions

$540,842 $989,270 $1,069,450 $1,090,839 $1,115,656 $1,137,969 $5,944,026 $1,160,728 $1,183,943 $1,207,622 $1,231,774 $1,256,410 $6,040,477 $11,984,503

• 2. Capital Investments *

$2,009,500 $2,009,500 $1,000,000 $1,000,000 $3,009,500

• 3. Unamortized BuyBack

$481,905 $481,905 $0 $481,905

• 4. Campus Donation

$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $300,000 $50,000 $50,000 $50,000 $50,000 $50,000 $250,000 $550,000

• 5. Utilities

$100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $600,000 $100,000 $100,000 $100,000 $100,000 $100,000 $500,000 $1,100,000

• 6. Metz Family Foundation Donation

$100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $600,000 $100,000 $100,000 $100,000 $100,000 $100,000 $500,000 $1,100,000

• 7. Override

$1,754,229 $1,739,759 $1,956,261 $2,031,394 $2,072,022 $2,113,462 $11,667,127 $2,155,732 $2,198,846 $2,242,823 $2,287,680 $2,333,433 $11,218,514 $22,885,641 Total $5,036,476 $2,979,029 $3,275,711 $3,372,233 $3,437,678 $3,501,431 $21,602,558 $4,566,460 $3,632,789 $3,700,445 $3,769,454 $3,839,843 $19,508,991 $41,111,549

• 8. In-Kind Catering Credits

$25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $150,000 $25,000 $25,000 $25,000 $25,000 $25,000 $125,000 $275,000 $0 $0 $0 Grand Total ( In-Kind/Hard Dollars) $5,061,476 $3,004,029 $3,300,711 $3,397,233 $3,462,678 $3,526,431 $21,752,558 $4,591,460 $3,657,789 $3,725,445 $3,794,454 $3,864,843 $19,633,991 $41,386,549 * $2 million dollar capital investment amount is for the stub year through year 5, as stated in the initial contract paragraph 2.4 *The one million dollar capital investment in year six is a part of the renewal as stated in the original contract paragraph 2.4

Food Service Vendor Metz Financial Contribution Update

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FLORIDA A&M UNIVERSITY METZ CONTRACT VALUE PROPOSED RENEWAL TERMS -METZ Stub Year Actuals Stub Year Actuals Year 1 Actuals Year 2 Actuals Year 3 Actuals/Projecte d Year 4 Projected Year 5 Projection SUB TOTAL YEARS 1 - 5 Year 6 Projected Year 7 Projected Year 8 Projected Year 9 Projected Year 10 Projected SUB Total YEARS 6-10 Grand Total

• 1. Total Commissions

$540,842 $989,270 $1,069,450 $1,090,839 $1,115,656 $1,137,969 $5,944,026 $1,160,728 $1,183,943 $1,207,622 $1,231,774 $1,256,410 $6,040,477 $11,984,503

• 2. Capital Investments **

$2,009,500 $2,009,500 $3,500,000 $3,500,000 $5,509,500

• 3. Unamortized BuyBack

$481,905 $481,905 $0 $481,905

• 4. Campus Donation

$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $300,000 $50,000 $50,000 $50,000 $50,000 $50,000 $250,000 $550,000

• 5. Utilities

$100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $600,000 $100,000 $100,000 $100,000 $100,000 $100,000 $500,000 $1,100,000

• 6. Metz Family Foundation Donation

$100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $600,000 $100,000 $100,000 $100,000 $100,000 $100,000 $500,000 $1,100,000

• 7. Override

$1,754,229 $1,739,759 $1,956,261 $2,031,394 $2,072,022 $2,113,462 $11,667,127 $2,155,732 $2,198,846 $2,242,823 $2,287,680 $2,333,433 $11,218,514 $22,885,641 Total $5,036,476 $2,979,029 $3,275,711 $3,372,233 $3,437,678 $3,501,431 $21,602,558 $7,066,460 $3,632,789 $3,700,445 $3,769,454 $3,839,843 $22,008,991 $43,611,549

• 8. In-Kind Catering Credits

$25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $150,000 $25,000 $25,000 $25,000 $25,000 $25,000 $125,000 $275,000 $0 Grand Total ( In-Kind/Hard Dollars) $5,061,476 $3,004,029 $3,300,711 $3,397,233 $3,462,678 $3,526,431 $21,752,558 $7,091,460 $3,657,789 $3,725,445 $3,794,454 $3,864,843 $22,133,991 $43,886,549 Difference in Original and Proposed Contract Renewals $0 $0 $0 $0 $0 $0 $0 $2,500,000 $0 $0 $0 $0 $2,500,000 $2,500,000 ** $3.5 Million dollars is the proposed renewal amount. It represents a $2.5 million increase over the original renewal investment amount.

Thank you

Questions?

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